AfterDawn: Tech news

Circuit City filed for chapter 11 protection

Written by James Delahunty (Google+) @ 12 Nov 2008 2:06 User comments (4)

Circuit City filed for chapter 11 protection Circuit City Stores, Inc. announced on Monday that it had received approval for its first day motions from the United States Bankruptcy Court for the Eastern District of Virginia in Richmond. The motions filed on the 10th by Circuit City as part of voluntary filing for reorganization relief under Chapter 11 of the United States Bankruptcy Code. Circuit City received court approval for a $1.1 billion debtor-in-possession ("DIP") revolving credit facility to supplement its working capital and provide additional liquidity while it works to reorganize the business.
This financing is being provided by the lenders of Circuit City's current asset-based credit facility and enables the company to pay vendors and other business partners in the ordinary course for goods and services received after the filing. Circuit City received authority to continue to make wage and salary payments and continue various benefits for
associates as well as honor customer programs, such as returns, exchanges and gift cards, and other pre-petition customer obligations.

"We are pleased to have obtained court approval for our first day motions, a critical first step in Circuit City's reorganization process," said James A. Marcum, vice chairman and acting president and chief executive officer of Circuit City Stores, Inc. "These approvals will help position us for a more successful holiday selling season and allow us to operate our business and serve our valued guests without interruption as we work to emerge from Chapter 11 as quickly as possible."

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4 user comments

113.11.2008 3:14

sorry to say this but cut OUR losses! FOLD! In this economy, my only guess of what they could be doing is making them selvs an online store like new egg or maybe online with store pickup but no more store front itself anymore!? they all ready have the online order & store pickup thing doing okay i have used it a few times my self.

213.11.2008 15:12

This store went from 'very large' to nothing. They are no longer listed on the NASDAQ either. And their stock is hovering around .20 cents a share (it was about .11 cents when they filed).

How long have they been in business now?


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317.11.2008 23:32
kubapolak
Inactive

I'm glad that they filed. I used to just buy stuff from them, but in the past two years I switched over to best buy because CCity service started to go under. The store I was going to became very unpleasant to be in and buy things. I'm pleased with them filing for bankruptcy!

426.11.2008 23:45

I cannot say that I didn't see this coming and they can't really say they couldn't either because of their high prices and their very low quality service. The store I go to I only go to, purchase things I know will not need servicing like Blu Ray DVD discs other than that you could kind of see it coming the way they treated their customers.

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